Avalo Therapeutics enters into agreement to divest AVTX-800 series

Avalo Therapeutics announced it entered into a purchase agreement with AUG Therapeutics to sell its rights, title and interest in, assets relating to AVTX-801, AVTX-802 and AVTX-803. AUG will pay an upfront payment of $150,000, as well as, for each compound, make a contingent milestone payment of $15,000,000 if the first Food and Drug Administration approval is for an indication other than a Rare Pediatric Disease, or up to 20% of certain payments, if any, granted to AUG upon any sale of any priority review voucher granted to AUG by the FDA, net of any selling costs. Additionally, AUG will assume up to $150,000 of certain liabilities incurred prior to the date of the Purchase Agreement and assume all costs relating to the 800 Series from the date of the Purchase Agreement. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including obtaining certain third-party consents. “We are excited to announce the transfer of our 800 series programs for the treatment of congenital disorders of glycosylation to AUG. In AUG’s hands, these programs could advance to provide reliable treatments for patients in need. This divestiture also reaffirms Avalo’s unwavering commitment to executing our strategic focus on our immunology assets, which we believe hold the greatest value and potential for our shareholders,” stated Dr. Garry Neil, MD, Chief Executive Officer, and Chairman of the Board at Avalo Therapeutics. “This transaction will have an immediate positive impact on our cash flow and reduce the utilization of our internal resources for non-core assets, while also maintaining substantial upside potential for Avalo upon program success.”